Demand for data centre capacity dedicated to artificial intelligence (AI) has surged across Europe this year, as emerging AI infrastructure providers, often referred to as neoclouds, accelerate their expansion efforts amid slowing hyperscaler activity.
According to new research from CBRE, signings for AI-focused colocation capacity reached 414MW in the first nine months of 2025, up from 133MW compared to the same period in 2024. More than half of this capacity (57%) was signed in the Nordics.
The increase reflects a market shift as hyperscaler demand has moderated temporarily and neocloud providers are securing large-scale capacity to meet the growing requirements of AI-driven applications.
Data centre operators are implementing measures to manage the additional risk associated with leasing to neocloud firms, including higher rental rates to offset build costs and ensure returns on AI-ready facilities.
Andrew Jay,Head of Data Centre Solutions, Europe at CBRE commented:
"Neoclouds have expanded their footprint in Europe this year by absorbing vacant space that was originally intended for hyperscalers. It is a sign that many data centre providers are growing more comfortable with the ambitions of neocloud providers and the covenants that come with it."
Kevin Restivo, Director, European Data Centre Research at CBRE commented:
"Neocloud providers are taking AI specific capacity at scale in Europe. We see tremendous growth of this segment especially in the Nordics, where lower-cost renewable power is often available in greater abundance than in many other European markets."
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage serving, valuations); Building Operations & Experience (facilities management, property management, flex space & experience); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development).
